* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment Reserved on: 13^thMarch, 2026 Judgment pronounced on: 28^th March, 2026 + W.P.(C) 17743/2025 & CM APPL. 73375-73376/2025, CM APPL.

10722/2026 UNION BANK OF INDIA .....Petitioner Through: Mr. Sandeep Bajaj, Ms. Swastika Kumari, Ms. Aakansha Nehra and Mr.

Mayank Biyani, Advocates.

versus DELHI JAL BOARD & ORS. .....Respondents Through: Mr. Sanjay Jain Senior Advocate with Mr. Tushar Sannu, Mr. Nishank Tripathi, Ms. Harshita Sukhija, Ms. Rishika Agrawal and Ms. Priya Tyagi, Advocates.

Mr. T. Sundar Ramanathan & Ms. Sukanya Viswanathan, Advocates for R-2 CORAM:

HON’BLE MR. JUSTICE AMIT BANSAL

JUDGMENT

AMIT BANSAL, J.

1. The present writ petition has been filed on behalf of Union Bank of India, which portrays itself to be a secured creditor and successor-in-interest, administering the Package-II of the Interceptor Sewer Project (ISP) (hereinafter ‘Project’) works of the erstwhile M/s Pratibha- Mosinzhstroi Consortium (now under liquidation), to assail and seek quashing of the termination letter dated 12^th November, 2025.

2. Brief factsnecessaryfor adjudicationofthe presentwritpetitionare set out below:

2.1. In the year 2011, the respondent no.1/DJB, with a view to abate the pollution of the River Yamuna, decided to lay interceptor sewers along the three major drains, namely Najafgarh, Supplementary, and Shahdara and appointed the respondent no.2/Engineers India Limited (EIL) as a Project Management Consultant for the same.

2.2. The respondent no.2/EIL floated a tender document for design and construction of the aforesaid interceptor sewers along with Operation and Maintenance (‘O&M’) of the aforesaid interceptor sewers for a period of 11 years, including a one-year defect liability period.

2.3. The tender was awarded to the respondent no.3/Consortium, having M/s. Pratibha Industries Limited (hereinafter ‘PIL’) as the lead member.

2.4. On 8^th December, 2011, a Tripartite Agreement was executed between the respondent no.1/DJB, respondent no.2/EIL and the respondent no.3/Consortium for the design and construction of the aforesaid interceptor sewers.

2.5. On 19^th July, 2014, the petitioner bank sanctioned a loan to PIL having a limit of over Rs. 500 crores. In terms of the loan document, a first charge was created over the entire assets of the Project.

2.6. On 1^st February, 2019, a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter ‘IBC’) was admitted by NCLT, Mumbai Bench against PIL and a moratorium under Section 14 of IBC was set in place.

2.7. While PIL was undergoing the Corporate Insolvency Resolution Process (CIRP), the respondent no.3/Consortium completed and handed over the Project to the respondent no.1/DJB and a completion certificate was issued.

2.8. On8^th February,2021,NCLT commenced liquidation in respect of PIL and a Liquidator was appointed. The petitioner bank, being the secured financial creditor,filed its claimtothe tune of Rs.900 croresbefore the Liquidator of PIL.

2.9. During liquidation proceedings, the respondent no.1/DJB entered into an Operation and Maintenance (O&M) Agreement dated 7^th June, 2021,withtherespondentno.3/Consortium,wheretheConsortiumwas represented by PIL.

2.10. On 14^th July, 2021, the petitioner bank issued a notice under Section

13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter ‘SARFAESI Act’) for the enforcement of its security interest.

2.11. On 27^th July 2021, the respondent no.1/DJB terminated the O&M Agreement dated 7^th June 2021.

2.12. Subsequently, the respondent no.3/Consortium filed a writ petition before this Court, being W.P.(C) 10740/2021, seeking quashing of the terminationletterdated27^thJuly,2021.ThisCourtvideorderdated24^th September, 2021 granted an interim stay against the operation of the said termination letter.

2.13. On 17^th November, 2023, the petitioner bank took over the physical possession of Package-II assets of the Project and appoin